I Missed My Tax Deadline, Now What?
What To Do When You Miss A Deadline
The first step is to file immediately, as soon as possible. Gather the information necessary to complete your form, sit down, and file your return. The IRS will impose penalties and fees when you don’t file and pay your taxes, but they’re leaner on those who file closer to the missed deadline, than for those who go for weeks without filing.
Generally, IRS penalties accrue interest based off of the amount you owe on a monthly and partial month basis, so the longer you go without filing the more money you’ll owe. So, if you can’t file til next week, relax, your penalty won’t grow that much. However, some penalties, like the one for failing to file your 990 accrue on a daily basis.
You may have the instinct to file an extension online, seeing how they’re automatic and quick and easy to file. Extensions are great if you know ahead of time that you’ll need more time to file. However, unfortunately, once a deadline day has passed you can no longer apply for an extension. Even if you do, your form will be rejected.
Also, sometimes people think extensions are a way to get out of paying your tax bill. This isn’t the case. Extensions online give you more time to file your taxes, not to pay them. You’ll have to pay your tentative tax or an estimation on the amount you owe by the original tax deadline with your extension.
If you haven’t filed your taxes yet because you can’t pay for them, that’s not a good excuse. With IRS fees and penalties, you’ll end up owing more than the original amount. It’s best to go ahead and pay your taxes as soon as possible.
There are a few payment options you can look into. For example, you can contact the IRS for an installment plan. An installment plan is basically a payment plan that you work out with the IRS. They will be more than happy to discuss an individual plan based off of what amount you can pay towards your tax bill on a monthly basis.
Keep in mind that installment plans also collect interest, and the interest rates are often higher than the interest rates on credit cards. So, it may actually be cheaper in the long run to charge your tax bill or to take out a loan to cover it.
You don’t have to figure this out on your own. If you need a little help figuring out your best option contact a CPA or tax professional to help you out. They’re up to date with the current tax laws, penalties, and procedures.
When you actually sit down to file your taxes, take your time. A difference of 5 to 15 minutes won’t matter after the deadline. It’s factors like days and weeks that the IRS keep an eye on. If you speed through your return you might make mistakes, and as a result, your form could get rejected. Be patient and make sure that all of your information and figures are correct before transmitting your return to the IRS.
Keep Calm and File
You missed a deadline, but it’s not the end of the world. Don’t panic, just take a deep breath to get your information together and file as soon as you can. Relax if you need a few more days of planning, it won’t make a major difference. Filing late and correctly is better than not filing at all. For more blogs visit ExpressExtension.com and please share your advice on filing late in the comment section below.